The USDA REAP grant has new rules.

USDA rewrote REAP in October 2026. Grants now cover up to 25% of project cost, up to $500,000, and are awarded after a system has run for 12 months. No application window is open yet. We can tell you whether your project, or the system you already own, fits the new rules.

Check my REAP eligibility

Rural Energy for America Program

The Rural Energy for America Program (REAP) is a USDA grant and loan-guarantee program that helps agricultural producers and rural small businesses pay for renewable energy systems and energy efficiency improvements.

On October 1, 2026, USDA published a final rule that rebuilt the program, effective October 16, 2026. The biggest change is the order of events: you no longer apply before you build. A solar system has to be installed and running, with 12 months of measured production, before USDA will accept an application. Awards are then scored on real output and cost, not projections.

Check my eligibility

What the REAP grant covers now

Up to 25% of project cost. You cover at least 75%.
$1,500 to $500,000 for a solar or other renewable energy system; up to $250,000 for energy efficiency improvements.
Grant plus guaranteed loan: a REAP guaranteed loan can help with upfront cost, up to a combined 75% of project cost.
Timing: apply 12 to 24 months after the project is finished. For the first application window only, that reaches back 36 months, so a system built in the last three years may qualify.

REAP is competitive. Applications are scored and funded in rank order, so a project should make financial sense on its own numbers, with the grant as a possible return later.

❌ Disclaimer
PPM Solar does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

REAP status: no application window open

As of October 21, 2026

October 1, 2026: final rule published in the Federal Register
October 16, 2026: rule took effect
November 2, 2026: public comment period closes
Application window: not yet announced. USDA will set the dates, the funding amount and any priority points in a Notice of Funding Opportunity.

We will update this page when the window is announced. Until then, the most useful thing an owner can do is gather records: 12 months of utility bills from before installation, monthly production data, itemized invoices, permits, the interconnection agreement, and country-of-origin documentation for the equipment.

Read the REAP guide

See if your solar project fits the new REAP rules

Who can apply for a REAP grant?

Eligibility now has two halves, the applicant and the project, and both have to pass.

Agricultural producers whose operation is owned entirely by an individual or immediate family (or a Tribe), where the majority owner earns at least half of their income from the operation.
Rural small businesses that show as a small business in SAM.gov under SBA size standards.
The applicant must be the highest-level owner, not a subsidiary, in business and in control of the site for at least 12 months before the project began, with current assets at least equal to current liabilities and positive cash flow.
Every project, including a farm’s, must be in a USDA-defined rural area.
One award per federal fiscal year, counted across companies with the same owners.

How much can you save with the USDA REAP grant?

Up to 25% of project cost, capped at $500,000 for a solar system. The bigger question is still how much solar saves your business on its own: a commercial system that lowers your operating costs on its own numbers is a sound decision with or without an award. The federal commercial solar tax credit is a separate incentive and does not depend on REAP; ask your CPA how a REAP grant affects your tax position.

What areas and sites are eligible?

Location: check your business address on the USDA rural eligibility map.
Rooftop solar on a barn, shop, packing house or business building, serving that business’s own load, is the cleanest fit.
Ground-mount solar on certified cropland is not eligible. Elsewhere it can qualify when the site’s past energy use supports the system size.
Sized to real use: production above about 110% of the prior year’s usage loses scoring points, and the system must have its own meter, with no residence sharing it.
Equipment origin: a solar system with any component made in a country on the federal foreign-adversary list is not eligible. Systems installed before October 1, 2026 are exempt from this one rule.
Not eligible: EV chargers, stand-alone batteries, adding batteries to an existing system, and projects across more than one location.

Why work with PPM Solar on a REAP project?

PPM Solar is one of the most reviewed solar companies in the country. With a 17-year track record of dedication to customer satisfaction and over 1,500 projects performed, our work speaks for itself.

Under the new REAP, the most useful things an installer can do are build a right-sized system and hand you a complete file: itemized invoices, permits, as-built drawings, interconnection records, production data and country-of-origin documentation. That is how we already work.

PPM Solar awards and certifications

Only highest quality equipment

At PPM Solar, we offer only top tier solar modules, inverters, and mounting structures that have been time-tested while making the latest and greatest technology available. Under the new REAP rule, the country of manufacture of every component matters, so we document the origin of modules, inverters, racking and monitoring for each project. Find out more about the components we install in our Technical Library.

Products we install

Commercial expertise

We have worked on major commercial projects like UF Health Shands, San Felasco Tech City, and Gainesville Health & Fitness, and on farm and rural business systems across North Florida. Regardless of your industry or the size of your project, PPM has the experience and expertise to assist you.

Commercial portfolio

Frequently Asked Questions

How can I apply for a REAP grant?

Applications go to USDA Rural Development, after your system has been built and has 12 months of production on record, during an application window USDA announces in a funding notice. The new rule tightens conflict-of-interest standards between applicants and the companies that build their systems, so the application should come from you or an independent grant professional. PPM supplies the project documentation the application asks for. Your USDA state energy coordinator can confirm the details for your project.

How does the REAP grant work now?

You build first, run the system for 12 months, then apply and compete. USDA scores applications on energy produced per grant dollar, how closely the system matches your usage, simple payback and other factors, and funds them in rank order. Battery storage qualifies only when it is installed with the new solar system and is no larger than the system it is paired with. EV chargers and stand-alone batteries are not eligible.

My solar system is already installed. Can I apply?

Possibly. For the first application window only, projects completed 12 to 36 months before the application date can apply. You will need 12 consecutive months of utility bills from before installation and 12 months of production after it. Systems installed before October 1, 2026 are also exempt from the equipment-origin rule.

Is the REAP grant paid in cash?

A REAP grant is a cash award, not a loan, and it does not have to be repaid. If your application is selected, USDA pays the approved amount for a completed, operating project. USDA also offers a separate REAP guaranteed loan for upfront cost; a grant and a guaranteed loan together can cover up to 75% of project cost.

Are REAP grants taxable?

Grants are generally treated as taxable income. Ask your CPA how a REAP grant affects your tax position, including the federal commercial solar tax credit.